Tesla Prepares to Launch Cybercab in New Markets

Tesla is gearing up to launch its Cybercab in new markets beyond its home base in Austin, Texas. The company aims to "literally take over every part of terrestrial transportation," according to Chief Financial Officer Vaibhav Taneja during the third-quarter earnings call on Wednesday.

The Cybercab expansion will kick off in Dallas next month, with plans to extend to other cities by the end of the year. Currently, Tesla operates robotaxi versions of its Model Y SUV in small fleets across Dallas, Houston, and several cities in Florida including Miami, Orlando, and Tampa.

Tesla also announced that it will begin selling Cybercabs to fleet operators by the end of this year. This broader expansion could intensify competition with Waymo, the current leader in the U.S. robotaxi market, which has over 4,000 vehicles deployed across more than a dozen cities.

Tesla claims that its Cybercab is cheaper and easier to manufacture, which could allow it to undercut Waymo and other robotaxi operators on pricing. However, the company must achieve significant scale outside of Austin to validate this claim. Taneja noted a recent increase in the miles driven by Tesla's self-driving cars, although the company did not disclose revenue figures from its robotaxi efforts.